Thames Water appeals to regulator for bills increase

The business had sought a 53% hike in bills over the next five years, however this was rejected in December by the water regulator Ofwat, settling instead for a 35% rise as part of a price determination for all suppliers across England and Wales.

In a statement to the markets this morning (14 February) Thames Water said its board had concluded "the final determination for the regulatory period 2025 to 2030 does not appropriately support the investment and improvement that is required for Thames Water to deliver for its customers, communities and environment for the next five years."

Its chairman, Sir Adrian Montague, said: "We are focused on putting the business on a long-term stable footing so we can succeed in our turnaround, and build and maintain an infrastructure that supports growth and can withstand the effects of climate change.

"We put forward a realistic business plan for 2025-2030 that addressed our customers’ and stakeholders’ priorities such as providing safe and resilient water supplies and improving performance.

"After careful consideration, our analysis shows that our Final Determination for the next regulatory period will continue to impact our ability to fund the improvements our customers and the environment so rightly want and deserve."

It comes as Thames Water waits to hear if the High Court approves a £3bn rescue deal to ward off the possibility of collapse. The company has said without the cash it will collapse on 24 March.

A judgement is expected early next week.

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